MAUMEE, Ohio, March 23, 2020 /PRNewswire/ -- Dana Incorporated
(NYSE: DAN) today announced that it is taking the necessary
actions to adapt to rapidly changing demand levels as certain of
its key customers reduce their production levels in response to the
ongoing COVID-19 control efforts. The company's actions include
additional employee safety measures, adjusting production
schedules, idling certain manufacturing facilities, and managing
controllable costs.
Due to this unprecedented disruption in mobility markets and
associated economic uncertainty, the company believes it is prudent
to withdraw its most recent full-year financial guidance which did
not factor in the effects of the COVID-19 pandemic. Results
for the first quarter will be impacted primarily by the changes in
customer production schedules in the second half of March.
"We believe Dana has ample liquidity to manage significantly
lower production volumes," said Jonathan
Collins, executive vice president and chief financial
officer. "We are flexing our cost structure to match the
lower level of demand and combined with our strong balance sheet,
positions us to navigate the current environment."
The company had $527 million in
cash and marketable securities at the end of 2019 and $979 million available on its committed revolving
credit facility for total liquidity of more than $1.5 billion. The company notes that it has
no meaningful debt maturities before 2024.
The company will provide an update on market conditions on its
first-quarter earnings call.
Forward-Looking Statements
Certain statements and projections contained in this news release
are, by their nature, forward-looking within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on our current expectations,
estimates, and projections about our industry and business,
management's beliefs, and certain assumptions made by us, all of
which are subject to change. Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," and similar expressions, and variations or negatives of
these words. These forward-looking statements are not
guarantees of future results and are subject to risks,
uncertainties, and assumptions that could cause our actual results
to differ materially and adversely from those expressed in any
forward-looking statement.
Dana's Annual Report on Form 10-K, subsequent Quarterly Reports
on Form 10-Q, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings discuss important risk
factors that could affect our business, results of operations and
financial condition. The forward-looking statements in this
news release speak only as of this date. Dana does not undertake
any obligation to revise or update publicly any forward-looking
statement for any reason.
About Dana Incorporated
Dana is a world leader in providing power-conveyance and
energy-management solutions that are engineered to improve the
efficiency, performance, and sustainability of light vehicles,
commercial vehicles, and off-highway equipment. Enabling the
propulsion of conventional, hybrid, and electric-powered vehicles,
Dana equips its customers with critical drive and motion systems;
electrodynamic technologies; and thermal, sealing, and digital
solutions.
Founded in 1904, Dana employs more than 36,000 people who are
committed to delivering long-term value to their customers, which
include nearly every vehicle manufacturer in the world. Based
in Maumee, Ohio, USA, and with
locations in 34 countries across six continents, the company
reported sales of $8.6 billion in
2019. Having established a high-performance culture that
focuses on its people, the company has earned recognition around
the world as a top employer. Learn more at dana.com.
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SOURCE Dana Incorporated